The Benefits of Syndicated Real Estate Investments

If you're an older investor you might find that you are getting more conservative in your older years and there are many replacement property options that suit your more conservative position.

Investing by Age

In your younger days you were all about wealth accumulation. In your latter years you're more about wealth preservation and creating a steady stream of income.

To that end there are 1031 replacement property options that are all cash, debt free deals. There's no leverage or risk of having to refinance a property (or to pay off debt service). And if the economy starts to peter out you're going to be in a safe and steady investment.

Syndicated Real Estate

Syndicators such as AEI Fund Management in Saint Paul have properties that are available for people to purchase, assuming that they are accredited investors, that will be steady bastions of stability. In your latter years it's more about putting your wealth on a steady plain so that you can eventually pass the property to your heirs with a stepped-up basis. Meanwhile you want to create a steady stream of income. So debt free, all cash syndicated real estate Investments fill this unique niche in the market.

• Start Your 1031 Exchange: If you have questions about debt-free real estate investments, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2017 Copyright Jeffrey R. Peterson All Rights Reserved

Who Qualifies as an Accredited Investor & How Can it Help Your 1031 Exchange?

In the context of a 1031 exchange, taxpayers want to be able to access the best investments possible. However, not all properties are readily available to the general public because the Securities and Exchange Commission (SEC) regulates what kind of properties can be advertised and marketed to the public.

Certain types of people (accredited investors) are deemed not to need the same level of protection as the average consumer. These people are thought to be more sophisticated and appropriate to market these types of securities to.

Who Qualifies as an Accredited Investor?

In order to be deemed an accredited investor, an individual must demonstrate that they have an annual income of at least $200,000 (or $300,000 if you’re married filing a joint tax return), or show that you have a net worth exceeding $1,000,000.

If you meet the threshold then you can be given access to securitized real estate Investments that allow you to roll your money into what are typically very low management, passive Investments that generate steady streams of income without your having to engage in the day-to-day management of the business.

Delaware Statutory Trusts & Tenancy-in-Common Syndications

These offerings (often referred to as Delaware Statutory Trusts or tenancy-in-common syndications) are very popular among older investors that are getting out of management-intensive property such as farms and apartment buildings, and are looking for a place to put their replacement property proceeds into that will allow them a steady stream of income and perhaps some leisure time to travel and enjoy life.

• Start Your Exchange: If you have questions about accredited investors and 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2017 Copyright Jeffrey R. Peterson All Rights Reserved